The project is expected to be implemented over three years, with development activities proposed between October 2025 and October 2028.
Larsen & Toubro (L&T), which recently signed an investment MoU with the Tamil Nadu government, has sought fresh Environmental Clearance (EC) and Coastal Regulation Zone (CRZ) clearance to execute the project, businessline has learnt.L&T has proposed a ₹1,100-crore infrastructure expansion at its Kattupalli shipyard and modular fabrication facility near Chennai to ramp up production and fully utilise the capacities already permitted under earlier environmental approvals.The expansion will include new fabrication and assembly shops, warehouse sheds, a skill development centre, residential accommodation for employees, office buildings, an additional jetty, and other operational infrastructure. These additions are intended to strengthen the operational capabilities of the shipyard and modular fabrication facility, sources said.According to a pre-feasibility report prepared for obtaining statutory clearances, the proposed investment will be made entirely within L&T’s existing 892.11-acre complex and will not require any additional land acquisition or rehabilitation. The development is aimed at enabling the company to achieve its approved modular fabrication capacity of 50,000 tonnes per annum, along with annual capacities for building 25 ships and repairing 60 ships.Capital costThe project is expected to be implemented over three years, with development activities proposed between October 2025 and October 2028. The capital cost estimate of ₹1,100 crore includes civil works, plant and machinery, engineering, contingencies and establishment costs.The report estimates employment for around 1,000 workers during the construction phase. Once operational, the expanded facility is expected to generate around 6,000 direct and indirect jobs, including contractual employment.Beyond its maritime significance, the expansion is expected to play an increasingly important role in the renewable energy supply chain. Kattupalli already serves as a key fabrication base for complex offshore structures and has emerged as an important asset in L&T’s growing offshore wind business. The facility supports the manufacture of large-scale offshore and onshore modules, including jackets, topsides, turbine towers and floating structures for the energy sector.Published on July 14, 2026
